The floor of the New York Stock Exchange is being worked on by traders. Brendan McDermid.
Brendan McDermid.
Markets could be more affected by this year than last year.
According to the chief global market strategist at Invesco, that is the case.
There is a chance of a stock market correction in the first half of the new year, according to a former investment strategist and portfolio manager. She said the recovery will likely be swift.
She wrote that the odds of one have grown since the last sizeable correction.
The Federal Reserve may begin to hike rates in the first half of the year, which makes the odds worse.
The Fed said in December that it would accelerate how quickly it would reduce asset purchases. It indicated that it would hike rates three times this year and next after it slashed rates to record lows when the COVID-19 pandemic hit.
She doesn't believe that the Fed will hike rates in March. It's too soon given the spread of the Omicron variant. The Fed is eager to reduce its balance sheet.
Omicron.
The spread of the Omicron variant could be a factor in the new year. She said that inflation will continue to rise as Omicron spreads, but it should peak by mid-2022 and then slowly decelerate.
The near-term headwind will likely be Omicron. She wrote that it could mean the end of the epidemic by the first half of the next decade.
Other experts agree with the view that Hooper is not an epidemiologist. There is no guarantee that the highly transmissible variant will signal the end of the Pandemic.
Business Insider has an original article.
